Union officials are urging the Government to guarantee the future of British Steel and safeguard hundreds of jobs on Teesside amid suggestions that the company is seeking a multimillion-pound loan to secure its future.

British Steel - which was created in 2016 when Greybull Capital bought the Long Products Europe business of Tata Steel - employs thousands of workers around the UK, including plants at Lackenby, Skinningrove, and at Blaydon, in Gateshead.

The company has said it is facing “challenges” and unions are urging Ministers not to repeat the inaction that followed SSI’s decision to close its steel plant in Redcar in 2015.

Any financial help would come just weeks after the company was given funds of around £100m to pay its European Union carbon bill.

A British Steel spokesman said: “As we have previously commented, the uncertainties around Brexit are posing challenges for all businesses including British Steel, and we are holding constructive discussions with our stakeholders on how to navigate them.

“Last month the company agreed a short term bridge facility with Government to help it meet its EU emissions obligations, and discussions are continuing about a package of additional support to assist the company address broader Brexit-related issues, whilst continuing with its investment plans.”

Anna Turley (Image: Evening Gazette)

Redcar MP Anna Turley said: “This is very worrying news for the thousands of workers and their families employed at British Steel, including the sites at Lackenby and Skinningrove.

“I understand that discussions between the company, government, lenders and trade unions are ongoing and I urge ministers to do everything in their power to do what is needed to save British Steel.

“The steel industry is crucial, underpinning our manufacturing sector, and another of its biggest players cannot be allowed to fail. The chaotic handling of Brexit and the uncertainty it has caused has contributed to this crisis, as has a failure to learn from the 2015 steel crisis and tackle the underlying problems, despite solutions being offered.

“It is time the Government stepped up and met its responsibilities to support British industry.”

A spokesman for the Community union said: “We are aware of the situation and are having ongoing discussions with the company at the highest levels.

“These reports will be extremely worrying news for all British Steel workers and many more in the supply chains.

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“We understand that talks are continuing between the company, the Government and lenders. We would urge all parties to recognise the consequences of not taking the necessary steps to ensure British Steel can continue.

“Everyone needs to do absolutely everything to give the company the chance of a future as to do otherwise would be devastating for thousands of workers and their families.”

Unite national officer Tony Brady said: “The workforce of British Steel worked tirelessly to secure the steelmaker’s future during the difficult times, and given a fighting chance will do so again.

“Unite will be seeking urgent assurances about our members’ futures at British Steel, a company which helps sustain thousands of job in the local economy and wider supply chain.

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“Having just secured a big order for rail, Unite is firmly of the view that British Steel can and should have a bright future. To do so though the Government must, as reports suggest, help the steelmaker through the tough times, while urgently addressing the wider underlying problems facing the UK steel industry.”

It is understood that meetings are being held where workers will hear details about the company’s plans.

Ross Murdoch, national officer of the GMB union, said: “This Government has a track record of sitting on its hands while UK manufacturing collapses round its ears. Now is the time to take action. Minsters must come out and guarantee the loan required to safeguard British Steel.

“Thousands of UK jobs are on the line, not to mention the entire future of our proud steel industry.”